Accounting vs Auditing | Top 11 Differences You Must Know!

In this video on Accounting vs Auditing, here we discuss its definition, and some top differences between accounting and auditing.

𝐖𝐡𝐚𝐭 𝐢𝐬 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠?
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The language of business is known as accounting. Any business that is measured in terms of numbers and these numbers are arrived at by means of accounting.

𝐁𝐫𝐚𝐧𝐜𝐡𝐞𝐬 𝐨𝐟 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠
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1. Financial Accounting

2. Cost Accounting

3. Managerial Accounting

4. Tax Accounting

5. Human Resource Accounting

6. Government Accounting


𝐖𝐡𝐚𝐭 𝐢𝐬 𝐀𝐮𝐝𝐢𝐭𝐢𝐧𝐠?
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Auditing is an activity of verification, checking and evaluation of financial statements.

Auditing can be divided into two parts i.e External Audit and Internal Audit.

1. External Audit is performed by external agencies
2. Internal Audit is done by the employees of the organization itself.

𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 𝐁𝐞𝐭𝐰𝐞𝐞𝐧 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐯𝐬 𝐀𝐮𝐝𝐢𝐭𝐢𝐧𝐠
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1. Accounting is an act of maintaining the monetary records of a company. Whereas, auditing is the evaluation of financial records / statements prepared through the accounting function.

2. Aim of accounting is to provide a true and fair view of the financial statements to various users. Whereas, the aim of auditing is to verify the reliability of the financial statement’s true and fair view.

If you want to know more about 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐯𝐬 𝐀𝐮𝐝𝐢𝐭𝐢𝐧𝐠, you can go to this 𝗹𝗶𝗻𝗸 𝗵𝗲𝗿𝗲: https://www.wallstreetmojo.com/accoun...

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